Politicians in the region have vowed to investigate a “suggestion” European money has been unfairly used to support jobs in Greece while workers are at risk of losing theirs in Northumberland.

General Mills is proposing to close its Jus-Rol food factory at Berwick , with 265 jobs at risk.

Since the announcement the site could close, speculation has been rife that the work done at Berwick is proposed to be moved to the company’s site in Greece.

Berwick MP Anne-Marie Trevelyan has now vowed to look into a “suggestion” that European Union (EU) funding may be going into the Greek site while the Northumberland factory is earmarked for closure, saying it “would not be normal for EU money to be used to support an industry in one country at the expense of another member state.”

A North East MEP has said she will investigate, described European funds as “crucial for our regional development” and said the public “have the right to know how they are spent here and abroad.”

General Mills - makers of frozen dough products - has said the proposed closure follows a review of its manufacturing and distribution network in European and Australasia, which revealed a need to address excess capacity in its UK baking business.

It is to carry out consultation with trade unions and staff representatives.

The site could close its doors by autumn of next year.

Anne- Marie Trevelyan

Since news of the proposed closure was announced, speculation has been rife that the work done at Berwick will instead be carried out at General Mills’ site in Greece, which produces Jus-Rol products.

And now Conservative Mrs Trevelyan has vowed to look into the suggested use of European money to support the Greek site, at the same time as Berwick is proposed for closure.

She said: “I know there has been a suggestion that EU funding may be going to the General Mills factory in Greece – I do not know if that is the case, it would not be normal for EU money to be used to support an industry in one country at the expense of another member state, but I will investigate through formal channels.”

North East Labour MEP Jude Kirton-Darling added: “It is against the letter and spirit of EU rules to use EU funds to relocate production and jobs.

“These funds are meant to create new jobs.

“I will investigate carefully any allegations made that General Mills have applied for or been offered EU regional funds to relocate within the EU, raising questions at the highest level if there is any suggestion that EU rules have been broken.

“These funds are crucial for our regional development in the North East, as we are a net recipient of EU funds, and the public have the right to know how they are spent here and abroad.”

She stressed the suggestion was “an entirely uncorroborated rumour” and said it will “only serve to heighten tensions over the potential job losses.”

A spokeswoman for General Mills declined to comment on whether EU funding was going into the Greek site.

On the issue of whether the work from Berwick would be done in Greece, she said: “We can only confirm that, if a decision is made to close the facility following consultation, manufacturing would be consolidated within the General Mills supply chain network.”

The European Commission has previously said it is against use of funds to support jobs in one country over another.

A commission answer to a parliamentary question from 2014 states: “The commission does not support the use of Structural Funds in a way that would encourage or facilitate the relocation of jobs to another Member State.”

However, General Mills has categorically denied the claims.

A spokesman for the firm said: “General Mills can confirm that absolutely no EU funds are involved.”